The Focal Point of the Market

There’s one corner of the market that everyone on Wall Street is paying attention to. And it’s not AI.

And when this catalyst hits, our trade opportunities will balloon.

The catalyst ruling the market.

The stock market is almost made to confuse you.

Wall Street fat cats have created a whole new world, with new language, in hopes you’ll give up in frustration and just let them do what they want with your money.

Not anymore…

I’m here to explain the intricacies of this market and the best opportunities for traders.

The 10-Year Yield

Stay with me. I told you this might seem confusing…

The 10-year Treasury yield is the annual interest rate the U.S. government pays to borrow money for a decade. It’s regarded as the ultimate economic thermometer for global financial markets.

And currently, it keeps going up.

That’s not good because it ensures government debt keeps climbing.

And with inflation stuck near recent highs due to oil concerns in Iran, Fed chairman Warsh may be forced to hike rates further to dampen economic activity and control inflation.

That would exacerbate the 10-year yield issue, and government debt would spike higher. Which doesn’t help an already weak demand for bonds.

Currently, Treasury Secretary Scott Bessent is buying truckloads of bonds in an attempt to bring the yield down.

As of September 9:

People are selling U.S. bonds for a myriad of reasons. That’s causing yields to spike. And Bessent is trying to bat clean up.

The Part That Doesn’t Add Up

With this much money moving in the market, and the extremity of the factors at play, volatility should be higher.

Here’s a look at the VIX, it’s still trading in a “normal” range.

And it doesn’t take the VIX to notice that volatility is in the toilet.

Just look at the daily candles of the Invesco QQQ Trust (NASDAQ: QQQ) compared to more volatile periods earlier this year.

As options traders, we make the most money when the market is volatile.

Short-dated options move exponentially compared to the underlying stock, but if the underlying stock barely moves, our trade potential is capped.

The asset I’m watching right now in coordination with the 10-year yield is the iShares 20+ Year Treasury Bond ETF (NASDAQ: TLT). It’s a bond ETF, and I’m hoping to see it spike as a sign that the demand for bonds is growing.

If the asset keeps diving, we’re in trouble.